The Eurozone’s next domino : why Portugal is not Greece

Shalendra SHARMA, Sally TAM

Research output: Journal PublicationsJournal Article (refereed)

Abstract

With Greece’s problems taking a back seat with the approval of the second €130 bailout and bond-swap deal, attention has turned to Portugal – the other most troubled economy in the Eurozone. Will Portugal’s debts also prove unmanageable, requiring debt restructuring where private creditors are forced to take a big haircut, or will the €78 billion bailout Lisbon has received from the European Union and the International Monetary Fund, and domestic structural reforms, be enough to stave off a Greek-style default? This paper illustrates that Portugal’s woes are different from those of Greece, Ireland and Spain. Given the structural conditions and deep commitment to reform and political will demonstrated by the Portuguese leaders and citizens alike, Portugal has a good chance to avoid Greece’s fate.
Original languageEnglish
Pages (from-to)125-153
Number of pages29
JournalWorld Economics
Volume13
Issue number2
Publication statusPublished - Jun 2012
Externally publishedYes

Fingerprint

Eurozone
Portugal
Greece
indebtedness
structural reform
creditor
IMF
Ireland
restructuring
Spain
commitment
leader
citizen
reform
economy

Keywords

  • Öffentliche Schulden
  • public debt
  • finanzkrise
  • financial crisis
  • Wirtschaftskrise
  • economic crisis
  • Portugal
  • Eurozone
  • Euro area

Cite this

SHARMA, Shalendra ; TAM, Sally. / The Eurozone’s next domino : why Portugal is not Greece. In: World Economics. 2012 ; Vol. 13, No. 2. pp. 125-153.
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The Eurozone’s next domino : why Portugal is not Greece. / SHARMA, Shalendra; TAM, Sally.

In: World Economics, Vol. 13, No. 2, 06.2012, p. 125-153.

Research output: Journal PublicationsJournal Article (refereed)

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KW - Öffentliche Schulden

KW - public debt

KW - finanzkrise

KW - financial crisis

KW - Wirtschaftskrise

KW - economic crisis

KW - Portugal

KW - Eurozone

KW - Euro area

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